With land for expansion dwindling, Gaithersburg shifts gears

Gaithersburg fueled its double-digit population growth in recent decades by annexing land for large mixed-use developments, a pattern which gave rise to Crown, Kentlands and Rio.

But county planners say those sorts of opportunities are dwindling, and in a recently unveiled draft update to the city’s master plan, suggest a new strategy: Focus on redeveloping what’s already built, including Olde Towne and the site of the former Lakeforest Mall.

“The city faces the likelihood that future growth will occur at a significantly slower pace than experienced in prior decades,” the draft states.

The slowdown also reflects a hard hit on the I-270 technology and life sciences corridor, which runs through Gaithersburg. Federal government reductions under the Trump administration impacted the business corridor more than the Washington region as a whole, according to the plan.

Gaithersburg Council member Neil Harris told The Banner that he agrees that the city’s growth pattern is evolving.

“At this point, there really don’t seem to be any significant greenfield opportunities in the surrounding area that would be candidates for becoming part of the incorporated city of Gaithersburg,” Harris said. “So opportunities in the future, assuming the boundaries of the city do not change, are more about infill.”

But he emphasized that the plan, a guide that assures that local planning decisions align with state and city goals, is still in the public comment phase and must be approved by the council.

The master plan, called Build Gaithersburg 2040, did not cast the city’s slower growth as a negative, saying only that the forecast helps create land-use policies that maintain “strong neighborhoods, supports employment opportunities, and preserves the city’s long-term competitiveness.”

‘People are staying’

About 70,000 people live in Gaithersburg, which is still growing, but far more slowly than in recent years. From 2020 through July 2025, it grew 2.1%, according to census estimates.

The fastest-growing segment is people 65 and older, according to the plan.

“That means people are staying. We like that,” said Mayor Lisa Henderson, who was sworn in on Monday to replace Jud Ashman following his election to the Montgomery County Council.

“We’ve got to be very intentional about growth,” she said. “If we’re doing housing, it has to take into account the impact on transportation, including cycling and pedestrians, e-scooters and e-bikes.”

The plan says housing demand in Gaithersburg remains high “even amid population leveling.”

It points to large redevelopment projects as examples of opportunity.

Among them is Olde Towne, the city’s historic core. The plan proposes new “ground-floor activity” such as restaurants, retail, entertainment, and arts and cultural spaces. The city has already been investing in façade improvements and other enhancements.

Olde Towne and the former Lakeforest site are included in a state-designated Enterprise Zone, providing investors with tax advantages.

Lakeforest, once one of the county’s most popular shopping malls, closed in 2023.

Today, it’s been demolished “and is going to be redeveloped in the next several years as a new community,” Harris said.